Mobile Phone Industry

The Inventor

Dr. Martin Copper - Dyna TAC 8000x (The Brick)

Driving factors of mobile handset industry

Mobile Network - Availability of Network in Urban and Rural areas - Access to the Network - Advanced wireless services 3G/LTE
Various services and applications available at finger tip - Mobile Banking - Mobile shopping - Bill payments Social networking effect - Facebook - Twitter - YouTube Cheaper calling rates - Low Calling Rates - Affordable mobile data plans Low cost and Advancement of cell phone - Smartphone Providing platform to access various services - Local Cell Phone manufacturers Micromax, Lava, GFive

Advancement in Mobile handset Liquid batteries, speech recognition, flexible touch screen Co-existing Wi-Fi and WiMAX

Dual Core processors

NFC & Voice Recognition Transparent Screen Laser enabled Keypad Naked eye 3D smartphone

HD Video recording and playback

Superphones with built-in Projectors

Advancement in OS of Mobile phones Apple - iOS 5.0 & iOS 6.0

RIM - Blackberry 10 Jam Google Android 4.4 Ice-cream sandwich & Android 5 Jelly bean Microsoft Windows 8 Samsung Bada

Mobile Tariff Comparison Across World - Voice

1

1 0.9 0.8 0.7 0.6

0.5
US $ 0.4 0.3 0.2
0.1 0.25 0.17 0.38 0.38

0.12

0.09 0.04 0.02

0.1 0

0.01

Japan
Source: IDC

U.S.

U.K.

Canada

Finland

Taiwan Denmark

South Korea

Sweden

Hong Kong

India

Mobile Tariff Comparison Across World - Text

0.2
0.2 0.18 0.16 0.14 0.12 0.1 0.1 US $ 0.08 0.06 0.06 0.04 0.04 0.02 0 0.03 0.02 0.02 0.04 0.15 0.14

U.S.
Source: IDC

U.K.

Canada

Finland

Taiwan

Denmark

South Korea

Sweden

Hong Kong

India

Effect of Mobile phones on Landline Service

The number of telephone subscribers in India increased to 951.34 Million at the end of March, 2012 Negative growth of wireline subscribers by 0.48% in March, 12 Total 15 Lacs landline users disconnected their connection in March,2012 BSNL lost 6 lakh landline users in past 3 years Average closure rate of landline phones - 3%

Facts & Figures of Telecom in India Telephone Subscribers (Wireless and Landline): 951.34million Wireless Subscribers: 919.17 Millions Wireline Subscriber: 32.17 Million Average monthly subscribers additions: 11.80 Millions Cell phones: 893.84 Million (Dec 2011)

Active wireless subscribers: 683.02 Million

Annual Cell phone Addition: 227.27 Million (CY-2011) Average selling price for a mobile device sold in India is about $45 75% of the Mobile devices sold costing below $75

Tele - density in India

Wireless Tele-density 76% Wireline Tele-density - 2.66% Overall Tele-density 78.66%

180 160 140 120 100 80 60

162.82%

Wireless Wireline

76%

38.33% 6.73%

40
20 0

0.89%

2.66%

Urban
Source : TRAI

Rural

Overall

Customer view for mobile phone

Durability Size Battery Back up

Samsung iphone BlackBerry

Quality
High Cost

Brand
Nokia

Price

Low Cost

Dual SIM

Replacement

Wi-Fi

Features
OS

Service
Repairing

Social Networking

Ease of Availability

India Mobile Handsets Usage and Satisfaction Status 64% users happy with mobile handset brand MP3 Player and FM most desired feature in Mobile

Smartphone with advanced features at affordable prices Samsung

Customer care & after sell support BlackBerry Low price with basic features - Micromax and Spice Ease of Availability - Nokia Overall satisfaction - BlackBerry

Customers priority for mobile phone

6% 10% 35% Quality Service & Support Brand Features 29%

Price

20%

Source : CMR survey report , 2011

Value for Money

70%

66% 57% 58% 54% 54% 56%

60%

50%

40%

30%

20%

10%

0%

BlackBerry

Samsung

Nokia

MicroMax

Spice

G Five

Source : CMR survey report , 2011

Brand wise satisfaction for overall Performance

80%
72% 69% 68% 68% 63% 62% 61% 60% 60%

70%

60%

59%

59%

57%

56%

54%

50%

40%

30%

20%

10%

0%

Source : CMR survey report , 2011

Mobile phone industry across world

The global mobile phone market had total revenues of $62 Billion in Q1 2012. Global mobile phones industry is expected to increase to a value of $218 Billion by the end of 2015 with CAGR of 10.5% IDC forecasts worldwide smartphone market to grow by Nearly 50% in 2012 The UK mobile phones market had total revenues of $3.1 Billion in 2011 with CAGR of 4.5%. It is expected to grow with CAGR of 8.9% for the five-year period 2010 2015 with revenues of $4.8 Billion by end of 2015 The US mobile phones market had total revenues of $10.7 Billion in 2011 with CAGR of 5.4% It is expected to grow with CAGR of 3% for the five-year period 2010 2015 with value of $12.4 Billion by end of 2015

Smartphone Vendors, Shipment and Market share ,Q1 2012

Vendor Samsung Apple Nokia RIM HTC Others Total

Source : IDC

1Q12 Unit Sell 1Q11 Unit Sell 1Q12 Market Share 1Q11 Market Share Year-over-Year Change Millions Millions 42.2 23.1 11.9 9.7 6.9 39.1 144.9 29.10% 24.20% 8.20% 6.70% 4.80% 27.00% 100.00% 11.5 18.6 24.2 13.8 9 24.5 101.7 11.30% 18.30% 23.80% 13.60% 8.90% 24.10% 100.00% 267.00% 88.70% -50.80% -29.70% -23.30% 59.60% 42.50%

Top Mobile Phone Vendors, Shipment and Market share ,Q1 2012

Vendor
Samsung Nokia Apple ZTE LG Electronics Others Total
Source : IDC

1Q12 Unit Sell 1Q11 Unit Sell 1Q12 Market Share 1Q11 Market Share Year-over-Year Change Millions Millions 93.8 82.7 35.1 19.1 13.7 154 398.4 23.50% 20.80% 8.80% 4.80% 3.40% 38.70% 100.00% 69.3 108.5 18.6 15 24.5 168.4 404.3 17.10% 26.80% 4.60% 3.70% 6.10% 41.70% 100.00% 35.40% -23.80% 88.40% 27.00% -44.10% -8.60% -1.50%

Worldwide Mobile Phone Market share - Q1 2012

20.8 38.7

Nokia Samsung LG Apple

23.5

ZTE
4.8 8.8 3.4

Others

Source : IDC

Worldwide Smartphone OS Market Share Android rules the Smartphone OS Market with 59% share. iOS has maintained its second place with 23% of share.

Android iOS Symbian BlackBerry 6% 13.6% 36.1% Others 6.8% 6.4% 4.8%

23% 26% 18.3%

59%

Source: IDC

Q1-2011

Q1-2012

Mobile phone industry in India India holds 12% of shares of all global mobile handset market Indian mobile handset market grew by 15% & touch revenue of $6.63 Billion in 2011

51.5% contributed by smartphone and 25.2% by Dual SIM Mobiles Mobile phone production grew with CAGR of 28.3% in 2011

Smartphone are projected to grow by 45% as against a total market growth of 9%.
The smartphone segment is forecast to see a much higher CAGR of 63.4% and to achieve a shipment of 77.5 million by CY 2015.

Market Share of Various Mobile Phone Vendors in India

Nokia
6.80% 17.20% 39.00% 1.90% 4.00%

Local Brands Blackberry LG Sony Ericson HTC GFive Huawei Samsung

5.50% 1.40% 2.10% 5.90% 16.20%

Others

Intex Micromax
2.20%

1.30%

Karbonn Spice Maxx

6.90%

2.80%

3.00%

Source: Voice and Data

Future of Mobile phones

Mobile handset sales in India expected to grow by 9% in 2012 and reach 231 million units in 2012, with revenue of $18 Billion as per Gartner. IDC forecasts the market to clock 301 million by CY 2015, at CAGR of 13.03% during the period of 2011-2015 The number of mobile phones will exceed the number of people by 2022-23 Mobile handset market saw a growth of 6% in the first quarter of 2012.

The untapped rural market is expected to provide handset players the next phase of growth.
The advanced capabilities, advanced wireless services, and high quality camera and the smart phones are expected to witness a steep growth curve through 2015.

Thank you

n the overall India mobile handsets market, Nokia retained leadership position with 31% share, followed by Samsung at No. 2 with 15% and Micromax at No. 3 with 5%, in terms of sales (unit shipments) during CY 2011.